Over the years, entrepreneurship has seen a giant leap in the Indian business world. Enthusiastic and ambitious young minds are progressing with their revolutionary ideas while setting up futuristic companies.
However, there lies a greater concern on the productivity of such businesses which revolves around the setting up of the manufacturing unit. The setup process, therefore, becomes one of the crucial points to consider while determining the future growth of an industrial unit.
If you are also planning to set up a manufacturing plant then here are the factors you need to keep in mind. Read further and tick your checklist –
- Demand in Market
The first and foremost factor to consider is to do an extensive research about the demand for your product in the current market. In addition, you must also understand the fact that business world is not static but dynamic. Keeping this in mind, it is important that your business proposal has the ability to cope with the constantly changing needs of the customers. So, once you have decided your product line, begin your investigation about its needs, demand, target audience and future prospects.
The other vital factor that holds a significant position in the process of setting up a manufacturing is the location. Do not settle for anything unless you find it appropriate for your manufacturing plant. Some of the things that you must keep in mind while selecting the location are proximity to the market, availability of water and electricity. You must also consider the state of environmental before you consider zeroing on the location.
- Finance and Budget
The selection of your location also depends on your financial situation. If your budget is flexible, go ahead with the best location. You must also understand that your financial costs are also associated with other setup costs including construction of manufacturing plant, machinery, and workforce among other essential things required for its setup. Hence, your capital must be able to cover such expenses.
- Setup Cost
In contrast to a start-up business, setting up a manufacturing plant is quite an expensive step in the industry. You ought to pay a lot of attention while purchasing specialised machinery and hiring the staff. If you use ways that are affordable but effective, then there are chances that you can control the expenses to suit your budget. One of the steps that you can take is to use LED lights which offer ample illumination while keeping a tab on operating cost and safety of workers. LED lights such as High Bay Luminaires, Mid Bay Luminaires, and Flood Lights from brands like Wipro Lighting can prove to be a path-breaking inclusion in your manufacturing plant. LED Lights are highly energy-efficient and long-lasting with an expected life span of over 50,000 hours.
- An Efficient Team
A manufacturing plant should undoubtedly be managed by an efficient and effcetive team to break even and eventually make profits in future. Hence, do keep in mind the experience and qualifications of the new people you hire. You must also pay attention to the expectations of your employees and try reaching out to them. This will prove to be quite useful in the future for an excellent performance of the manufacturing plant.
- Rules and Regulations
Though last in the list, rules and regulations are extremely important. Every industry has its own set of standards, and it is important that you know about them. While researching about a product’s demand in the sector, also check the rules and regulations associated with its manufacturing. Most of the rules are concerned with the health, safety, and environmental regulations.
Apart from the above-listed things, you can also add another list of relevant factors depending on the type of industry you are entering. You also need to focus on your business model and the existing competitors in the market. If a manufacturing unit is setup based on these crucial things, expect a profitable future ahead.